E-Commerce

5 Key Reasons to Build Your Audience Outside of Amazon

5 Key Reasons to Build Your Audience Outside of Amazon

Introduction

In the modern e-commerce landscape, diversifying your marketing efforts beyond Amazon can significantly amplify your brand's reach and profitability. While Amazon remains a dominant marketplace, establishing your presence in other channels can enhance visibility and create a more robust business model.

Increasingly Competitive Market

Amazon, a behemoth in the advertising world, garnered $47 billion in advertising revenue last year[1] . Yet, as more brands flood the platform, differentiation becomes a Herculean task. Data from CommerceIQ underlines this trend, indicating a surge in advertising expenditures as sellers strive to stand out. With sellers increasing ad spend by 31% just to maintain visibility[2], the need to explore alternative markets is more pressing than ever.

Diversification of Traffic Sources

Exclusive reliance on Amazon exposes your business to risks from unforeseen algorithm tweaks and policy changes. Over half the sellers surveyed by Statistia reported a bias in Amazon's algorithm towards its own products[3]. Cultivating traffic through varied channels like your website, social media, or email campaigns not only reduces this dependency but also stabilizes your revenue streams, ensuring greater resilience against market fluctuations.

Higher Profit Margins

Operating off Amazon can significantly bolster your profit margins. While Amazon exacts fees ranging from 8% to 15% per sale, not to mention additional FBA charges, managing sales through your own platforms can cut down these costs. A Shopify study highlights that sellers enjoy 20% to 30% margins on direct sales[4], a stark contrast to the slimmer margins on Amazon, making the case for investment in your own brand's e-commerce site.

Brand Building

Steering customers to your proprietary channels isn't just about sales—it's about crafting a memorable brand. Direct interactions foster loyalty and brand recognition, crucial in a market where 59% of consumers prefer buying from familiar brands, according to Nielsen[5]. Your own channels serve as a direct line to your customers, enabling you to build lasting relationships and a loyal customer base.

Retargeting and Remarketing Opportunities

One of the significant advantages of directing traffic to your own site is the control it offers over customer data. Unlike on Amazon, your own site allows you to track user behavior and give visitors prompts to follow your brand on social media or sign up for newsletters and mailing lists. The ability to follow up with potential customers can dramatically increase conversion rates and encourage repeat business.

Conclusion

Expanding your e-commerce strategy beyond Amazon is not just a growth tactic; it's a necessity in today’s highly competitive market. By building your own sales channels, you can enjoy higher margins, greater brand control, and more effective customer engagement, setting the stage for sustained long-term growth.

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